Bill Text: CA AB1851 | 2015-2016 | Regular Session | Amended
Bill Title: Vehicular air pollution: reduction incentives.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB1851 Detail]
Download: California-2015-AB1851-Amended.html
BILL NUMBER: AB 1851 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2016
AMENDED IN ASSEMBLY APRIL 4, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Members Gray and Ting
FEBRUARY 10, 2016
An act to amend Section 44258.4 of, and to add and repeal
Chapter 8.1 (commencing with Section 44257.1) and Chapter 8.8
(commencing with Section 44269) to of
Part 5 of Division 26 of, the Health and Safety Code, to
amend amend, repeal, and add Sections 6011 and
6012 of the Revenue and Taxation Code, and to amend Section 5205.5 of
the Vehicle Code, relating to vehicular air pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 1851, as amended, Gray. Vehicular air pollution: reduction
incentives.
(1) Existing law establishes the Air Quality Improvement Program
that is administered by the State Air Resources Board for the
purposes of funding projects related to, among other things, the
reduction of criteria air pollutants and improvement of air quality.
Pursuant to the Air Quality Improvement Program, the state board has
established the Clean Vehicle Rebate Project to promote the
production and use of zero-emission vehicles and the Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project to provide
vouchers to help California fleets to purchase hybrid and
zero-emission trucks and buses.
The Charge Ahead California Initiative, administered by the state
board, includes goals of, among other things, placing in service at
least 1,000,000 zero-emission and near-zero-emission vehicles by
January 1, 2023, and increasing access for disadvantaged, low-income,
and moderate-income communities and consumers to zero-emission and
near-zero-emission vehicles.
The California Global Warming Solutions Act of 2006 establishes
the state board as the state agency responsible for monitoring and
regulating sources emitting greenhouse gases. The act authorizes the
state board to include the use of market-based compliance mechanisms.
Existing law requires all moneys, except for fines and penalties,
collected by the state board from a market-based compliance mechanism
to be deposited in the Greenhouse Gas Reduction Fund and to be
available upon appropriation by the Legislature.
This bill, as part for purposes of
the Clean Vehicle Rebate Project, would require the state
board board, until January 1, 2026, to provide
specified rebate amounts for battery electric vehicles, fuel-cell
vehicles, and plug-in hybrid electric vehicles; to limit
rebates to vehicles with a manufacturer's suggested retail price of
$60,000 or less; vehicles and to implement a
process to allow eligible applicants to obtain prompt preapproval
from the state board prior to purchasing an eligible vehicle, as
specified. The bill bill, until January 1,
2026, would authorize moneys from the Greenhouse Gas Reduction
Fund to be available, upon appropriation, for allocation under those
provisions and would authorize moneys available for allocation to
disadvantaged communities to be available, upon appropriation, for
allocations under those provisions to low- and moderate-income
residents of those communities.
This bill also would require the state board
board, until January 1, 2026, to issue specified rebates
up to the costs associated with the purchase and the installation of
an electric vehicle charging station to a property owner or lessee,
as specified. The bill would authorize
authorize, until January 1, 2026, moneys from the Greenhouse
Gas Reduction Fund to be available, upon appropriation, for
allocation for those rebates.
(2) Existing sales and use tax laws impose taxes on retailers
measured by gross receipts from the sale of tangible personal
property sold at retail in this state or on the storage, use, or
other consumption in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state measured by sales price. The Sales and Use Tax Law defines
the terms "gross receipts" and "sales price."
This bill would exclude exclude, until
January 1, 2026, from the terms "gross receipts" and "sales
price" for these purposes the value of a motor vehicle traded in for
a qualified motor vehicle, as defined, if the value of the trade-in
motor vehicle is separately stated on the motor vehicle invoice or
bill of sale or similar document provided by the purchaser. The bill
would authorize authorize, until January 1,
2026, moneys from the Greenhouse Gas Reduction Fund to be
available, upon appropriation, for allocation to reimburse counties
and cities for any revenue losses caused by those sales and use tax
exemptions.
(3) Existing federal law, until September 30, 2017, authorizes a
state to allow specified labeled vehicles to use lanes designated for
high-occupancy vehicles (HOVs). Existing law authorizes the
Department of Transportation to designate certain lanes for the
exclusive use of HOVs. Under existing law, until January 1, 2019,
until federal authorization expires, or until the Secretary of State
receives a specified notice, those lanes may be used by certain
vehicles not carrying the requisite number of passengers otherwise
required for the use of an HOV lane if the vehicle displays a valid
identifier issued by the Department of Motor Vehicles (DMV). Existing
law authorizes the DMV to issue no more than 85,000 of those
identifiers.
This bill would no longer limit the amount of identifiers issued
by the DMV.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) California is at the forefront of battling climate change, and
a main pillar of the state's climate strategy is reducing greenhouse
gas emissions to 1990 levels.
(b) To help achieve this greenhouse gas emissions goal, the State
Air Resources Board has required large vehicle manufacturers to
produce a certain amount of zero-emission vehicles as a percentage of
the overall number of vehicles the manufacturer makes for sale in
the state. The present mandate is 15.4 percent of new vehicles
delivered for sale by 2025.
(c) To reinforce this mandate, Governor Brown issued Executive
Order B-16-2012, which set a long-term target of 1,500,000
zero-emission vehicles on the road by 2025, with the hope and
expectation that the market for these vehicles will become mainstream
and self-sustaining for individuals, businesses, and public fleets.
(d) The widespread adoption and purchase of zero-emission vehicles
can help the environment and further the state's goals by mitigating
emissions and easing air pollution.
(e) To be effective in cutting emissions and cleaning up air
pollution, zero-emission and partial-zero-emission vehicles must
attract consumers who would otherwise choose a traditional
gasoline-fueled car.
(f) The current market for zero-emission vehicles has excessive
barriers, including the high relative purchase price associated with
zero-emission vehicles, limited range capability, inadequate charging
infrastructure, resale value, length of commute, and existing low
gas prices.
(g) In 2015, California's new car dealers sold over 2,000,000 new
vehicles with a combined 3.1 percent of those sales comprising
zero-emission vehicles and partial-zero-emission vehicles. That
represents a drop in market share for these vehicles, which was 3.2
percent in 2014.
(h) Using last year's 2,000,000 new vehicle sales as an estimate
of 2025 vehicle sales by covered manufacturers, the 15.4 percent
mandate by the State Air Resources Board would require 308,000
zero-emission vehicles and partial-zero-emission vehicles be
delivered for sale in the state that year. If the current 41.5
percent of new vehicle sales will continue to be made up of sport
utility vehicles, pickups, and vans, over 25 percent of the remaining
1,201,000 passenger vehicles delivered for sale just nine years from
now must be electric or plug-in electric vehicles.
(i) California has long focused on increasing disadvantaged
communities' access to environmentally-friendly technologies and
green transportation options to benefit the health of residents and
to enhance air quality.
(j) Compared to gasoline-fueled vehicles, alternative-fueled
vehicles reduce the country's dependence on foreign oil and
substantially lower consumers' fuel costs.
(k) Automakers and new car dealers face numerous inherent market
challenges when introducing and retailing the alternative-fueled
vehicles required by the State Air Resources Board's vehicle
mandates, including complex incentives, uncertain policy support,
purchase price disparity, lengthy sales transactions, low gasoline
prices, poor after-sale electric vehicle infrastructure, and
sophisticated, constantly-changing technology.
(l) Incentives, such as rebates, tax credits, and high occupancy
vehicle lane access for zero- and partial-emission vehicles, are
crucial for continuing consumer interest in these vehicles, but
greater investments are needed to significantly affect consumer
buying behavior and the overall alternative-fueled vehicle
marketplace, especially when it comes to economically disadvantaged
communities.
(m) Increased incentives have been deployed with great success in
other countries and have resulted in a large-scale consumer migration
from traditional gas-fueled vehicles to cleaner modes of
transportation.
(n) Accordingly, it is the intent of the Legislature in enacting
this act to provide more realistic incentives that will move customer
demand of zero-emission vehicles and achieve the adoption of
alternative-fueled vehicles to meet the state's greenhouse gas
emissions goals.
SEC. 2. Chapter 8.1 (commencing with Section 44257.1) is added to
Part 5 of Division 26 of the Health and Safety Code, to read:
CHAPTER 8.1. ZERO-EMISSION VEHICLE INCENTIVES
44257.1. For purposes of this chapter, the following terms have
the following meanings:
(a) "Battery electric vehicle" means a vehicle that meets the
state's super ultra-low emission vehicle standard for exhaust
emissions and the federal inherently low-emission vehicle evaporative
emission standard, as defined in Part 88 (commencing with Section
88.101-94) of Title 40 of the Code of Federal Regulations, as that
part read on January 1, 2016, and is powered entirely by an electric
motor drawing current from rechargeable storage batteries.
(b) "Clean Vehicle Rebate Project" has the same meaning as
established pursuant to Section 44274.
(c) "Disadvantaged community" means a community identified
pursuant to Section 39711.
(d) "Fuel-cell vehicle" means a vehicle that meets the state's
super ultra-low emission vehicle standard for exhaust emissions and
the federal inherently low-emission vehicle evaporative emission
standard, as defined in Part 88 (commencing with Section 88.101-94)
of Title 40 of the Code of Federal Regulations, as that part read on
January 1, 2016, and is powered by an electric motor drawing current
from compressed hydrogen into a fuel cell.
(e) "New motor vehicle dealer" has the same meaning as in Section
426 of the Vehicle Code.
(f) "Plug-in hybrid electric vehicle" means a vehicle that meets
the state's enhanced advanced technology partial zero-emission
vehicle standard or transitional zero-emission vehicle standard.
44257.3. (a) (1) Beginning January 1, 2017,
as part of for the purposes of the
Clean Vehicle Rebate Project, the state board shall provide the
following incentive amounts:
(1)
(A) For a vehicle qualified as a plug-in hybrid
electric vehicle, an amount equal to 10 percent of the manufacturer's
suggested retail price. price or the final
sales price, whichever is lower.
(2)
(B) For a vehicle qualified as a battery electric
vehicle, an amount equal to 15 percent of the manufacturer's
suggested retail price. price or the final
sales price, whichever is lower.
(3)
(C) For a vehicle qualified as a fuel-cell vehicle, an
amount equal to 25 percent of the manufacturer's suggested retail
price. price or the final sales price,
whichever is lower.
(2) The incentive amounts provided pursuant to this subdivision
shall be applicable only for the first sixty thousand dollars
($60,000) of the manufacturer's suggested retail price or the final
sales price, whichever is lower.
(b) (1) Notwithstanding subdivision (a),
beginning January 1, 2017, as part of for the
purposes of the Clean Vehicle Rebate Project, the state board
shall provide for low- and moderate-income residents of a
disadvantaged community the following incentive amounts:
(1)
(A) For a vehicle qualified as a plug-in hybrid
electric vehicle, an amount equal to 40 percent of the manufacturer's
suggested retail price. price or the final
sales price, whichever is lower.
(2)
(B) For a vehicle qualified as a battery electric
vehicle, an amount equal to 45 percent of the manufacturer's
suggested retail price. price or the final
sales price, whichever is lower.
(3)
(C) For a vehicle qualified as a fuel-cell vehicle, an
amount equal to 55 percent of the manufacturer's suggested retail
price. price or the final sales price,
whichever is lower.
(2) The incentive amounts provided pursuant to this subdivision
shall be applicable only for the first sixty thousand dollars
($60,000) of the manufacturer's suggested retail price or the final
sales price, whichever is lower.
(c) (1) Moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, shall be
available, upon appropriation by the Legislature, for allocation
pursuant to subdivision (a).
(2) Moneys available for allocation to disadvantaged communities
shall be available, upon appropriation by the Legislature, for
allocation pursuant to subdivision (b).
44257.5. In addition to the current criteria and other
requirements for the Clean Vehicle Rebate Project, beginning January
1, 2017, the state board shall limit eligible vehicles to those
vehicles with a manufacturer's suggested retail price of sixty
thousand dollars ($60,000) or less.
44257.7. 44257.5. (a) (1) The state
board shall implement a process to allow eligible applicants under
the Clean Vehicle Rebate Project to obtain prompt preapproval from
the state board prior to purchasing or leasing a vehicle. The process
shall provide the applicant a unique identifiable number, which the
applicant can present to a new motor vehicle dealer, and shall enable
the unique identifiable number to be verified by a new motor vehicle
dealer at the time of purchase or lease.
(2) The state board shall implement a process to allow a new motor
vehicle dealer to be refunded any Clean Vehicle Rebate Project
incentive amount applied to the applicant's conditional sales
contract or other vehicle purchase or lease agreement in no fewer
than seven days.
(b) Upon the implementation of subdivision (a), a new motor
vehicle dealer may apply the Clean Vehicle Rebate Project incentive
amount to the applicant's conditional sales contract or other vehicle
purchase or lease agreement as a downpayment or amount due at lease
signing or delivery.
(c) The state board shall suspend the preapproval process
described in paragraph (1) of subdivision (a) if inadequate funding
is available to award incentives under the Clean Vehicle Rebate
Project. If the state board suspends the preapproval process, it
shall provide dealers and consumers no less than 30 days' advance
notice.
44257.9. 44257.7. The state board
shall adopt regulations implementing this chapter.
44257.9. This chapter shall remain in effect only until January
1, 2026, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2026, deletes or extends
that date.
SEC. 3. Section 44258.4 of the Health and Safety Code is amended
to read:
44258.4. (a) Any moneys utilized pursuant to this chapter from
the Greenhouse Gas Reduction Fund, created pursuant to Section
16428.8 of the Government Code, shall be consistent with the
appropriations processes and criteria established by the Greenhouse
Gas Reduction Fund Investment Plan and Communities Revitalization Act
(Chapter 4.1 (commencing with Section 39710) of Part 2).
(b) The Charge Ahead California Initiative is hereby established
and shall be administered by the state board. The goals of this
initiative are to place in service at least 1,000,000 zero-emission
and near-zero-emission vehicles by January 1, 2023, to establish a
self-sustaining California market for zero-emission and
near-zero-emission vehicles in which zero-emission and
near-zero-emission vehicles are a viable mainstream option for
individual vehicle purchasers, businesses, and public fleets, to
increase access for disadvantaged, low-income, and moderate-income
communities and consumers to zero-emission and near-zero-emission
vehicles, and to increase the placement of those vehicles in those
communities and with those consumers to enhance the air quality,
lower greenhouse gases, and promote overall benefits for those
communities and consumers.
(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts, and the
public, shall do all of the following:
(1) (A) Include, commencing with the funding plan for the 2016-17
fiscal year of the Air Quality Improvement Program (Article 3
(commencing with Section 44274) of Chapter 8.9), a funding plan that
includes the immediate fiscal year and a forecast of estimated
funding needs for the subsequent two fiscal years commensurate with
meeting the goals of this chapter. Funding needs may be described as
a range that identifies the projected high and low funding levels
needed for the two-year forecast period to contribute to technology
advancement, market readiness, and consumer acceptance of zero- and
near-zero-emission vehicle technologies. The funding plan shall
include a market and technology assessment for each funded zero- and
near-zero-emission vehicle technology to inform the appropriate
funding level, incentive type, and incentive amount. The forecast
shall include an assessment of when a self-sustaining market is
expected and how existing incentives may be modified to recognize
expected changes in future market conditions.
(B) Projects included in the forecast may include, but are not
limited to, any of the following:
(i) The Clean Vehicle Rebate Project, established pursuant to
Section 44274.
(ii) Light-duty zero-emission and near-zero-emission vehicle
deployment projects eligible under the Alternative and Renewable Fuel
and Vehicle Technology Program, established pursuant to Article 2
(commencing with Section 44272) of Chapter 8.9.
(iii) Programs adopted pursuant to paragraph (4).
(2) Update the plan required pursuant to paragraph (1) at least
every three years through January 1, 2023.
(3) No later than June 30, 2015, and consistent with Chapter 8.1
(commencing with Section 44257.1), adopt revisions to the criteria
and other requirements for the Clean Vehicle Rebate Project,
established pursuant to Section 44274, to ensure the following:
(A) Eligibility is limited based on income.
(B) Consideration of methods to increase participation rates.
(4) (A) Establish programs that further increase access to and
direct benefits for disadvantaged, low-income, and moderate-income
communities and consumers from electric transportation, including,
but not limited to, any of the following:
(i) Financing mechanisms, including, but not limited to, a loan or
loan-loss reserve credit enhancement program to increase consumer
access to zero-emission and near-zero-emission vehicle financing and
leasing options that can help lower expenditures on transportation
and prequalification or point-of-sale rebates or other methods to
increase participation rates among low- and moderate-income
consumers.
(ii) Car sharing programs that serve disadvantaged communities and
utilize zero-emission and near-zero-emission vehicles.
(iii) Deployment of charging infrastructure in multiunit dwellings
in disadvantaged communities to remove barriers to zero-emission and
near-zero-emission vehicle adoption by those who do not live in
detached homes. This clause does not preclude the Public Utilities
Commission from acting within the scope of its jurisdiction.
(iv) Additional incentives for zero-emission, near-zero-emission,
or high-efficiency replacement vehicles or a mobility option
available to participants in the enhanced fleet modernization
program, established pursuant to Article 11 (commencing with Section
44125) of Chapter 5.
(B) Programs implemented pursuant to this paragraph shall provide
adequate outreach to disadvantaged, low-income, and moderate-income
communities and consumers, including partnering with community-based
organizations.
SEC. 4. Chapter 8.8 (commencing with Section 44269) is added to
Part 5 of Division 26 of the Health and Safety Code, to read:
CHAPTER 8.8. ELECTRIC VEHICLE CHARGING STATION REBATES
44269. (a) The state board shall issue a rebate up to the costs
associated with the purchase and installation of an electric vehicle
charging station to a property owner or lessee in the following
amounts:
(1) Two thousand dollars ($2,000) for the first year of
installation.
(2) One thousand five hundred dollars ($1,500) following the first
year of installation.
(3) One thousand dollars ($1,000) following the second year of
installation.
(b) The property owner or lessee shall first place the electric
vehicle charging station in service during the calendar year for
which the rebate is claimed.
(c) The property owner or lessee shall maintain the electric
vehicle charging station for a minimum period of 60 months. If the
property owner or lessee does not maintain the electric vehicle
charging station for a minimum period of 60 months, the state board
shall seek reimbursement for the entire amount of the rebates
previously issued pursuant to subdivision (a) from the property owner
or lessee who had received those rebates.
(d) The property owner or lessee may not claim a rebate pursuant
to subdivision (a) for the installation of an electric vehicle
charging station if an existing electric vehicle charging station has
been removed from the property within the preceding 12 months.
(e) (1) The property owner or lessee may receive rebates for the
installation of up to two electric vehicle charging stations for use
on a residential property located in a disadvantaged community, as
identified pursuant to Section 39711.
(2) The property owner or lessee may receive rebates for the
installation of up to 10 electric vehicle charging stations for use
on a commercial or multifamily property.
(f) The state board shall limit eligible electric vehicle charging
stations to level 2 charging and rapid charging ports.
(g) The state board shall adopt regulations implementing this
chapter.
44269.5. Moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, shall be
available, upon appropriation by the Legislature, for allocation
pursuant to this chapter.
44269.7. This chapter shall remain in effect only until January
1, 2026, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2026, deletes or extends
that date.
SEC. 5. Section 6011 of the Revenue and Taxation Code is amended
to read:
6011. (a) "Sales price" means the total amount for which tangible
personal property is sold or leased or rented, as the case may be,
valued in money, whether paid in money or otherwise, without any
deduction on account of any of the following:
(1) The cost of the property sold.
(2) The cost of materials used, labor or service cost, interest
charged, losses, or any other expenses.
(3) The cost of transportation of the property, except as excluded
by other provisions of this section.
(b) The total amount for which the property is sold or leased or
rented includes all of the following:
(1) Any services that are a part of the sale.
(2) Any amount for which credit is given to the purchaser by the
seller.
(3) The amount of any tax imposed by the United States upon
producers and importers of gasoline and the amount of any tax imposed
pursuant to Part 2 (commencing with Section 7301) of this division.
(c) "Sales price" does not include any of the following:
(1) Cash discounts allowed and taken on sales.
(2) The amount charged for property returned by customers when
that entire amount is refunded either in cash or credit, but this
exclusion shall not apply in any instance when the customer, in order
to obtain the refund, is required to purchase other property at a
price greater than the amount charged for the property that is
returned. For the purpose of this section, refund or credit of the
entire amount shall be deemed to be given when the purchase price
less rehandling and restocking costs are refunded or credited to the
customer. The amount withheld for rehandling and restocking costs may
be a percentage of the sales price determined by the average cost of
rehandling and restocking returned merchandise during the previous
accounting cycle.
(3) The amount charged for labor or services rendered in
installing or applying the property sold.
(4) (A) The amount of any tax (not including, however, any
manufacturers' or importers' excise tax, except as provided in
subparagraph (B)) imposed by the United States upon or with respect
to retail sales whether imposed upon the retailer or the consumer.
(B) The amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 of the Internal Revenue Code for which the
purchaser certifies that he or she is entitled to either a direct
refund or credit against his or her income tax for the federal excise
tax paid or for which the purchaser issues a certificate pursuant to
Section 6245.5.
(5) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California upon
or with respect to retail sales of tangible personal property,
measured by a stated percentage of sales price or gross receipts,
whether imposed upon the retailer or the consumer.
(6) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California with
respect to the storage, use or other consumption in that city,
county, city and county, or rapid transit district of tangible
personal property measured by a stated percentage of sales price or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(7) Separately stated charges for transportation from the retailer'
s place of business or other point from which shipment is made
directly to the purchaser, but the exclusion shall not exceed a
reasonable charge for transportation by facilities of the retailer or
the cost to the retailer of transportation by other than facilities
of the retailer. However, if the transportation is by facilities of
the retailer, or the property is sold for a delivered price, this
exclusion shall be applicable solely with respect to transportation
which occurs after the purchase of the property is made.
(8) Charges for transporting landfill from an excavation site to a
site specified by the purchaser, either if the charge is separately
stated and does not exceed a reasonable charge or if the entire
consideration consists of payment for transportation.
(9) The amount of any motor vehicle, mobilehome, or commercial
coach fee or tax imposed by and paid the State of California that has
been added to or is measured by a stated percentage of the sales or
purchase price of a motor vehicle, mobilehome, or commercial coach.
(10) (A) The amount charged for intangible personal property
transferred with tangible personal property in any technology
transfer agreement, if the technology transfer agreement separately
states a reasonable price for the tangible personal property.
(B) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the price at which the tangible personal
property was sold, leased, or offered to third parties shall be used
to establish the retail fair market value of the tangible personal
property subject to tax. The remaining amount charged under the
technology transfer agreement is for the intangible personal property
transferred.
(C) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has not been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the retail fair market value shall be
equal to 200 percent of the cost of materials and labor used to
produce the tangible personal property subject to tax. The remaining
amount charged under the technology transfer agreement is for the
intangible personal property transferred.
(D) For purposes of this paragraph, "technology transfer agreement"
means any agreement under which a person who holds a patent or
copyright interest assigns or licenses to another person the right to
make and sell a product or to use a process that is subject to the
patent or copyright interest.
(11) The amount of any tax imposed upon diesel fuel pursuant to
Part 31 (commencing with Section 60001).
(12) (A) The amount of tax imposed by any Indian tribe within the
State of California with respect to a retail sale of tangible
personal property measured by a stated percentage of the sales or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(B) The exclusion authorized by subparagraph (A) shall only apply
to those retailers who are in substantial compliance with this part.
(13) (A) The value of a motor vehicle traded in for a qualified
motor vehicle if the value of the trade-in motor vehicle is
separately stated on the qualified motor vehicle invoice or bill of
sale or similar document provided to the purchaser.
(B) For purposes of this paragraph, "qualified motor vehicle"
means a motor vehicle that meets either of the following:
(i) California's super ultra-low emission vehicle standard for
exhaust emissions and the federal inherently low-emission vehicle
evaporative emission standard, as defined in Part 88 (commencing with
Section 88.101-94) of Title 40 of the Code of Federal Regulations as
that part read on January 1, 2016.
(ii) California's enhanced advanced technology partial
zero-emission vehicle standard or transitional zero-emission vehicle
standard.
(C) Consistent with Section 2230, moneys from the Greenhouse Gas
Reduction Fund, created pursuant to Section 16428.8 of the Government
Code, shall be available, upon appropriation by the Legislature, for
allocation to reimburse counties and cities for any revenue losses
resulting from the application of this paragraph.
(d) This section shall remain in effect only until January 1,
2026, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2026, deletes or extends
that date.
SEC. 6. Section 6011 is added to the
Revenue and Taxation Code , to read:
6011. (a) "Sales price" means the total amount for which tangible
personal property is sold or leased or rented, as the case may be,
valued in money, whether paid in money or otherwise, without any
deduction on account of any of the following:
(1) The cost
of the property sold.
(2) The cost of materials used, labor or service cost, interest
charged, losses, or any other expenses.
(3) The cost of transportation of the property, except as excluded
by other provisions of this section.
(b) The total amount for which the property is sold or leased or
rented includes all of the following:
(1) Any services that are a part of the sale.
(2) Any amount for which credit is given to the purchaser by the
seller.
(3) The amount of any tax imposed by the United States upon
producers and importers of gasoline and the amount of any tax imposed
pursuant to Part 2 (commencing with Section 7301) of this division.
(c) "Sales price" does not include any of the following:
(1) Cash discounts allowed and taken on sales.
(2) The amount charged for property returned by customers when
that entire amount is refunded either in cash or credit, but this
exclusion shall not apply in any instance when the customer, in order
to obtain the refund, is required to purchase other property at a
price greater than the amount charged for the property that is
returned. For the purpose of this section, refund or credit of the
entire amount shall be deemed to be given when the purchase price
less rehandling and restocking costs are refunded or credited to the
customer. The amount withheld for rehandling and restocking costs may
be a percentage of the sales price determined by the average cost of
rehandling and restocking returned merchandise during the previous
accounting cycle.
(3) The amount charged for labor or services rendered in
installing or applying the property sold.
(4) (A) The amount of any tax (not including, however, any
manufacturers' or importers' excise tax, except as provided in
subparagraph (B)) imposed by the United States upon or with respect
to retail sales whether imposed upon the retailer or the consumer.
(B) The amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 of the Internal Revenue Code for which the
purchaser certifies that he or she is entitled to either a direct
refund or credit against his or her income tax for the federal excise
tax paid or for which the purchaser issues a certificate pursuant to
Section 6245.5.
(5) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California upon
or with respect to retail sales of tangible personal property,
measured by a stated percentage of sales price or gross receipts,
whether imposed upon the retailer or the consumer.
(6) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California with
respect to the storage, use, or other consumption in that city,
county, city and county, or rapid transit district of tangible
personal property measured by a stated percentage of sales price or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(7) Separately stated charges for transportation from the retailer'
s place of business or other point from which shipment is made
directly to the purchaser, but the exclusion shall not exceed a
reasonable charge for transportation by facilities of the retailer or
the cost to the retailer of transportation by other than facilities
of the retailer. However, if the transportation is by facilities of
the retailer, or the property is sold for a delivered price, this
exclusion shall be applicable solely with respect to transportation
which occurs after the purchase of the property is made.
(8) Charges for transporting landfill from an excavation site to a
site specified by the purchaser, either if the charge is separately
stated and does not exceed a reasonable charge or if the entire
consideration consists of payment for transportation.
(9) The amount of any motor vehicle, mobilehome, or commercial
coach fee or tax imposed by and paid to the State of California that
has been added to or is measured by a stated percentage of the sales
or purchase price of a motor vehicle, mobilehome, or commercial
coach.
(10) (A) The amount charged for intangible personal property
transferred with tangible personal property in any technology
transfer agreement, if the technology transfer agreement separately
states a reasonable price for the tangible personal property.
(B) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the price at which the tangible personal
property was sold, leased, or offered to third parties shall be used
to establish the retail fair market value of the tangible personal
property subject to tax. The remaining amount charged under the
technology transfer agreement is for the intangible personal property
transferred.
(C) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has not been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the retail fair market value shall be
equal to 200 percent of the cost of materials and labor used to
produce the tangible personal property subject to tax. The remaining
amount charged under the technology transfer agreement is for the
intangible personal property transferred.
(D) For purposes of this paragraph, "technology transfer agreement"
means any agreement under which a person who holds a patent or
copyright interest assigns or licenses to another person the right to
make and sell a product or to use a process that is subject to the
patent or copyright interest.
(11) The amount of any tax imposed upon diesel fuel pursuant to
Part 31 (commencing with Section 60001).
(12) (A) The amount of tax imposed by any Indian tribe within the
State of California with respect to a retail sale of tangible
personal property measured by a stated percentage of the sales or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(B) The exclusion authorized by subparagraph (A) shall only apply
to those retailers who are in substantial compliance with this part.
(d) This section shall become operative on January 1, 2026.
SEC. 6. SEC. 7. Section 6012 of the
Revenue and Taxation Code is amended to read:
6012. (a) "Gross receipts" mean the total amount of the sale or
lease or rental price, as the case may be, of the retail sales of
retailers, valued in money, whether received in money or otherwise,
without any deduction on account of any of the following:
(1) The cost of the property sold. However, in accordance with any
rules and regulations as the board may prescribe, a deduction may be
taken if the retailer has purchased property for some other purpose
than resale, has reimbursed his or her vendor for tax which the
vendor is required to pay to the state or has paid the use tax with
respect to the property, and has resold the property prior to making
any use of the property other than retention, demonstration, or
display while holding it for sale in the regular course of business.
If that deduction is taken by the retailer, no refund or credit will
be allowed to his or her vendor with respect to the sale of the
property.
(2) The cost of the materials used, labor or service cost,
interest paid, losses, or any other expense.
(3) The cost of transportation of the property, except as excluded
by other provisions of this section.
(4) The amount of any tax imposed by the United States upon
producers and importers of gasoline and the amount of any tax imposed
pursuant to Part 2 (commencing with Section 7301) of this division.
(b) The total amount of the sale or lease or rental price includes
all of the following:
(1) Any services that are a part of the sale.
(2) All receipts, cash, credits and property of any kind.
(3) Any amount for which credit is allowed by the seller to the
purchaser.
(c) "Gross receipts" do not include any of the following:
(1) Cash discounts allowed and taken on sales.
(2) Sale price of property returned by customers when that entire
amount is refunded either in cash or credit, but this exclusion shall
not apply in any instance when the customer, in order to obtain the
refund, is required to purchase other property at a price greater
than the amount charged for the property that is returned. For the
purpose of this section, refund or credit of the entire amount shall
be deemed to be given when the purchase price less rehandling and
restocking costs are refunded or credited to the customer. The amount
withheld for rehandling and restocking costs may be a percentage of
the sales price determined by the average cost of rehandling and
restocking returned merchandise during the previous accounting cycle.
(3) The price received for labor or services used in installing or
applying the property sold.
(4) (A) The amount of any tax (not including, however, any
manufacturers' or importers' excise tax, except as provided in
subparagraph (B)) imposed by the United States upon or with respect
to retail sales whether imposed upon the retailer or the consumer.
(B) The amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 of the Internal Revenue Code for which the
purchaser certifies that he or she is entitled to either a direct
refund or credit against his or her income tax for the federal excise
tax paid or for which the purchaser issues a certificate pursuant to
Section 6245.5.
(5) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California upon
or with respect to retail sales of tangible personal property
measured by a stated percentage of sales price or gross receipts
whether imposed upon the retailer or the consumer.
(6) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California with
respect to the storage, use or other consumption in that city,
county, city and county, or rapid transit district of tangible
personal property measured by a stated percentage of sales price or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(7) Separately stated charges for transportation from the retailer'
s place of business or other point from which shipment is made
directly to the purchaser, but the exclusion shall not exceed a
reasonable charge for transportation by facilities of the retailer or
the cost to the retailer of transportation by other than facilities
of the retailer. However, if the transportation is by facilities of
the retailer, or the property is sold for a delivered price, this
exclusion shall be applicable solely with respect to transportation
which occurs after the sale of the property is made to the purchaser.
(8) Charges for transporting landfill from an excavation site to a
site specified by the purchaser, either if the charge is separately
stated and does not exceed a reasonable charge or if the entire
consideration consists of payment for transportation.
(9) The amount of any motor vehicle, mobilehome, or commercial
coach fee or tax imposed by and paid to the State of California that
has been added to or is measured by a stated percentage of the sales
or purchase price of a motor vehicle, mobilehome, or commercial
coach.
(10) (A) The amount charged for intangible personal property
transferred with tangible personal property in any technology
transfer agreement, if the technology transfer agreement separately
states a reasonable price for the tangible personal property.
(B) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the price at which the tangible personal
property was sold, leased, or offered to third parties shall be used
to establish the retail fair market value of the tangible personal
property subject to tax. The remaining amount charged under the
technology transfer agreement is for the intangible personal property
transferred.
(C) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has not been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the retail fair market value shall be
equal to 200 percent of the cost of materials and labor used to
produce the tangible personal property subject to tax. The remaining
amount charged under the technology transfer agreement is for the
intangible personal property transferred.
(D) For purposes of this paragraph, "technology transfer agreement"
means any agreement under which a person who holds a patent or
copyright interest assigns or licenses to another person the right to
make and sell a product or to use a process that is subject to the
patent or copyright interest.
(11) The amount of any tax imposed upon diesel fuel pursuant to
Part 31 (commencing with Section 60001).
(12) (A) The amount of tax imposed by any Indian tribe within the
State of California with respect to a retail sale of tangible
personal property measured by a stated percentage of the sales or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(B) The exclusion authorized by subparagraph (A) shall only apply
to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the
satisfaction of the board that the sales tax has been added to the
total amount of the sale price and has not been absorbed by them, the
total amount of the sale price shall be deemed to be the amount
received exclusive of the tax imposed. Section 1656.1 of the Civil
Code shall apply in determining whether or not the retailers have
absorbed the sales tax.
(13) (A) The value of a motor vehicle traded in for a qualified
motor vehicle if the value of the trade-in motor vehicle is
separately stated on the qualified motor vehicle invoice or bill of
sale or similar document provided to the purchaser.
(B) For purposes of this paragraph, "qualified motor vehicle"
means a motor vehicle that meets either of the following:
(i) California's super ultra-low emission vehicle standard for
exhaust emissions and the federal inherently low-emission vehicle
evaporative emission standard, as defined in Part 88 (commencing with
Section 88.101-94) of Title 40 of the Code of Federal Regulations as
that part read on January 1, 2016.
(ii) California's enhanced advanced technology partial
zero-emission vehicle standard or transitional zero-emission vehicle
standard.
(C) Consistent with Section 2230, moneys from the Greenhouse Gas
Reduction Fund, created pursuant to Section 16428.8 of the Government
Code, shall be available, upon appropriation by the Legislature, for
allocation to reimburse counties and cities for any revenue losses
resulting from the application of this paragraph.
(d) This section shall remain in effect only until January 1,
2026, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2026, deletes or extends
that date.
SEC. 8. Section 6012 is added to the
Revenue and Taxation Code , to read:
6012. (a) "Gross receipts" mean the total amount of the sale or
lease or rental price, as the case may be, of the retail sales of
retailers, valued in money, whether received in money or otherwise,
without any deduction on account of any of the following:
(1) The cost of the property sold. However, in accordance with any
rules and regulations as the board may prescribe, a deduction may be
taken if the retailer has purchased property for some other purpose
than resale, has reimbursed his or her vendor for tax which the
vendor is required to pay to the state or has paid the use tax with
respect to the property, and has resold the property prior to making
any use of the property other than retention, demonstration, or
display while holding it for sale in the regular course of business.
If that deduction is taken by the retailer, no refund or credit will
be allowed to his or her vendor with respect to the sale of the
property.
(2) The cost of the materials used, labor or service cost,
interest paid, losses, or any other expense.
(3) The cost of transportation of the property, except as excluded
by other provisions of this section.
(4) The amount of any tax imposed by the United States upon
producers and importers of gasoline and the amount of any tax imposed
pursuant to Part 2 (commencing with Section 7301) of this division.
(b) The total amount of the sale or lease or rental price includes
all of the following:
(1) Any services that are a part of the sale.
(2) All receipts, cash, credits, and property of any kind.
(3) Any amount for which credit is allowed by the seller to the
purchaser.
(c) "Gross receipts" do not include any of the following:
(1) Cash discounts allowed and taken on sales.
(2) Sale price of property returned by customers when that entire
amount is refunded either in cash or credit, but this exclusion shall
not apply in any instance when the customer, in order to obtain the
refund, is required to purchase other property at a price greater
than the amount charged for the property that is returned. For the
purpose of this section, refund or credit of the entire amount shall
be deemed to be given when the purchase price less rehandling and
restocking costs are refunded or credited to the customer. The amount
withheld for rehandling and restocking costs may be a percentage of
the sales price determined by the average cost of rehandling and
restocking returned merchandise during the previous accounting cycle.
(3) The price received for labor or services used in installing or
applying the property sold.
(4) (A) The amount of any tax (not including, however, any
manufacturers' or importers' excise tax, except as provided in
subparagraph (B)) imposed by the United States upon or with respect
to retail sales whether imposed upon the retailer or the consumer.
(B) The amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 of the Internal Revenue Code for which the
purchaser certifies that he or she is entitled to either a direct
refund or credit against his or her income tax for the federal excise
tax paid or for which the purchaser issues a certificate pursuant to
Section 6245.5.
(5) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California upon
or with respect to retail sales of tangible personal property
measured by a stated percentage of sales price or gross receipts
whether imposed upon the retailer or the consumer.
(6) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California with
respect to the storage, use, or other consumption in that city,
county, city and county, or rapid transit district of tangible
personal property measured by a stated percentage of sales price or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(7) Separately stated charges for transportation from the retailer'
s place of business or other point from which shipment is made
directly to the purchaser, but the exclusion shall not exceed a
reasonable charge for transportation by facilities of the retailer or
the cost to the retailer of transportation by other than facilities
of the retailer. However, if the transportation is by facilities of
the retailer, or the property is sold for a delivered price, this
exclusion shall be applicable solely with respect to transportation
which occurs after the sale of the property is made to the purchaser.
(8) Charges for transporting landfill from an excavation site to a
site specified by the purchaser, either if the charge is separately
stated and does not exceed a reasonable charge or if the entire
consideration consists of payment for transportation.
(9) The amount of any motor vehicle, mobilehome, or commercial
coach fee or tax imposed by and paid to the State of California that
has been added to or is measured by a stated percentage of the sales
or purchase price of a motor vehicle, mobilehome, or commercial
coach.
(10) (A) The amount charged for intangible personal property
transferred with tangible personal property in any technology
transfer agreement, if the technology transfer agreement separately
states a reasonable price for the tangible personal property.
(B) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the price at which the tangible personal
property was sold, leased, or offered to third parties shall be used
to establish the retail fair market value of the tangible personal
property subject to tax. The remaining amount charged under the
technology transfer agreement is for the intangible personal property
transferred.
(C) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has not been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the retail fair market value shall be
equal to 200 percent of the cost of materials and labor used to
produce the tangible personal property subject to tax. The remaining
amount charged under the technology transfer agreement is for the
intangible personal property transferred.
(D) For purposes of this paragraph, "technology transfer agreement"
means any agreement under which a person who holds a patent or
copyright interest assigns or licenses to another person the right to
make and sell a product or to use a process that is subject to the
patent or copyright interest.
(11) The amount of any tax imposed upon diesel fuel pursuant to
Part 31 (commencing with Section 60001).
(12) (A) The amount of tax imposed by any Indian tribe within the
State of California with respect to a retail sale of tangible
personal property measured by a stated percentage of the sales or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(B) The exclusion authorized by subparagraph (A) shall only apply
to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the
satisfaction of the board that the sales tax has been added to the
total amount of the sale price and has not been absorbed by them, the
total amount of the sale price shall be deemed to be the amount
received exclusive of the tax imposed. Section 1656.1 of the Civil
Code shall apply in determining whether or not the retailers have
absorbed the sales tax.
(d) This section shall become operative on January 1, 2026.
SEC. 7. SEC. 9. Section 5205.5 of
the Vehicle Code is amended to read:
5205.5. (a) For the purposes of implementing Section 21655.9, the
department shall make available for issuance, for a fee determined
by the department to be sufficient to reimburse the department for
the actual costs incurred pursuant to this section, distinctive
decals, labels, and other identifiers that clearly distinguish the
following vehicles from other vehicles:
(1) A vehicle that meets California's super ultra-low emission
vehicle (SULEV) standard for exhaust emissions and the federal
inherently low-emission vehicle (ILEV) evaporative emission standard,
as defined in Part 88 (commencing with Section 88.101-94) of Title
40 of the Code of Federal Regulations.
(2) A vehicle that was produced during the 2004 model year or
earlier and meets California's ultra-low emission vehicle (ULEV)
standard for exhaust emissions and the federal
ILEV standard.
(3) A vehicle that meets California's enhanced advanced technology
partial zero-emission vehicle (enhanced AT PZEV) standard or
transitional zero-emission vehicle (TZEV) standard.
(b) The department shall include a summary of the provisions of
this section on each motor vehicle registration renewal notice, or on
a separate insert, if space is available and the summary can be
included without incurring additional printing or postage costs.
(c) The Department of Transportation shall remove individual HOV
lanes, or portions of those lanes, during periods of peak congestion
from the access provisions provided in subdivision (a), following a
finding by the Department of Transportation as follows:
(1) The lane, or portion thereof, exceeds a level of service C, as
discussed in subdivision (b) of Section 65089 of the Government
Code.
(2) The operation or projected operation of the vehicles described
in subdivision (a) in these lanes, or portions thereof, will
significantly increase congestion.
(3) The finding shall also demonstrate the infeasibility of
alleviating the congestion by other means, including, but not limited
to, reducing the use of the lane by noneligible vehicles or further
increasing vehicle occupancy.
(d) The State Air Resources Board shall publish and maintain a
listing of all vehicles eligible for participation in the programs
described in this section. The board shall provide that listing to
the department.
(e) (1) For the purposes of subdivision (a), the Department of the
California Highway Patrol and the department, in consultation with
the Department of Transportation, shall design and specify the
placement of the decal, label, or other identifier on the vehicle.
Each decal, label, or other identifier issued for a vehicle shall
display a unique number, which shall be printed on or affixed to the
vehicle registration.
(2) Decals, labels, or other identifiers designed pursuant to this
subdivision for a vehicle described in paragraph (3) of subdivision
(a) shall be distinguishable from the decals, labels, or other
identifiers that are designed for vehicles described in paragraphs
(1) and (2) of subdivision (a).
(f) Reserved]
(g) If the Metropolitan Transportation Commission, serving as the
Bay Area Toll Authority, grants toll-free and reduced-rate passage on
toll bridges under its jurisdiction to a vehicle pursuant to Section
30102.5 of the Streets and Highways Code, it shall also grant the
same toll-free and reduced-rate passage to a vehicle displaying an
identifier issued by the department pursuant to paragraph (1) or (2)
of subdivision (a).
(h) (1) Notwithstanding Section 21655.9, and except as provided in
paragraph (2), a vehicle described in subdivision (a) that displays
a decal, label, or identifier issued pursuant to this section shall
be granted a toll-free or reduced-rate passage in high-occupancy toll
lanes as described in Section 149.7 of the Streets and Highways Code
unless prohibited by federal law.
(2) (A) Paragraph (1) does not apply to the imposition of a toll
imposed for passage on a toll road or toll highway that is not a
high-occupancy toll lane as described in Section 149.7 of the Streets
and Highways Code.
(B) On or before March 1, 2014, paragraph (1) does not apply to
the imposition of a toll imposed for passage in lanes designated for
tolls pursuant to the federally supported value pricing and transit
development demonstration program operated pursuant to Section 149.9
of the Streets and Highways Code for State Highway Route 10 or 110.
(C) Paragraph (1) does not apply to the imposition of a toll
charged for crossing a state-owned bridge.
(i) If the Director of Transportation determines that federal law
does not authorize the state to allow vehicles that are identified by
distinctive decals, labels, or other identifiers on vehicles
described in subdivision (a) to use highway lanes or highway access
ramps for high-occupancy vehicles regardless of vehicle occupancy,
the Director of Transportation shall submit a notice of that
determination to the Secretary of State.
(j) This section shall become inoperative on January 1, 2019, or
the date the federal authorization pursuant to Section 166 of Title
23 of the United States Code expires, or the date the Secretary of
State receives the notice described in subdivision (i), whichever
occurs first, and, as of January 1, 2019, is repealed, unless a later
enacted statute, that becomes operative on or before January 1,
2019, deletes or extends the dates on which it becomes inoperative
and is repealed.
